How accounting software can keep your financial records on track post lockdown
Most businesses have been hit hard by the coronavirus pandemic. Many companies around the world have resorted to work-from-home option in the wake of the lockdown. Organisations are working overtime to revamp their business strategies in order to work efficiently post the lockdown where tackling accounting process is one such vertical. The smooth functioning of the accounting process calls for installing accounting software.
Though accounting software has been helping organisations and people for a long time, its importance is increased like never before due to the pandemic. Businesses are seeking new ways to strengthen their roots and are also finding ways to kickstart again.
In such a scenario, the role of accounting software assumes significance. By opting for it, businesses can fight the inconvenience more efficiently. It helps in strategic planning, organisation, direction, and control of financial processes within an organisation or company.
Also, due to months of lockdown, ample amount of work is pending with companies, where accounting software can help to delegate and monitor all tasks while working from home. Thus, even during these unprecedented times, businesses can keep track of accounting. This allows the accounting team to manage entire financials of a company from anywhere, which otherwise is not possible with the manual accounting process.
Traditionally, accounting is done manually by a trained accountant through registers, vouchers, account books, etc, where checking account balances and reviewing information is a tedious process. Accountants need to go through multiple documents to locate information when asked for. Also, manual accounting process is not error-free.
Nowadays, accounting software is in demand due to its accuracy, convenience, and speed. It can be operated from home as well as the user can follow up on accounts payable or receivable, create necessary reports and continue with journal entries. It gives access to entire operations from anywhere which is vital in a work-from-home environment. The application also helps in collecting timely payments, management of business finances, keeping track of business inventory, and generating GST reports.
The accounting software makes better use of resources and time by efficiently managing the cash flow and improving inventory control. The software is equipped with required functionality and features, which are easy to use by a non-technical person too.
All the modules and various reports are also easy to use and learn, which enables the software to solve all accounts-related problems. It is also effective in tracking tax code changes. It is a one-time investment which makes the business management better, efficient, and easier.
Accounting software benefits include increased accuracy as it reduces or eliminates the possibility of human error. There are a lot of mathematical calculations in the manual bookkeeping process. An incorrect calculation in the method could have a great impact on the end balance sheet, which a company can’t afford especially when there is a lot of work piled up due to the lockdown.
Scrambling to track down expense sheets, receipts, and trying to figure out what you can change at the last minute is likely to lead to mistakes. Accounting software eliminates this mad rush to the finish line. With real-time accounting taking place every second, you don’t have to worry about putting in information after transactions have taken place.
The software will help you figure out what is deductible and what isn’t, giving you an idea of what you will owe on an expense come tax time, as soon as the transaction is entered. It also allows tracking of income and expenses, invoicing, and management of finances.
The software provides role-based security to prevent information from falling into wrong hands. You can have an automatic data backup and seamlessly integrate third-party applications with your existing system. In this way, you’ll have more control over who within your business or office or outside has access to your financial information.
Economic recession, natural disasters, and medical emergencies are situations that can hit a business hard without any warning and lead to a catastrophic upheaval. Now that the new normal has been established, we need to start planning how to do things differently post the lockdown.
Therefore, the need of the hour is to embrace tech disruptions at the earliest and become future-ready. So, if you have not yet availed an accounting solution, then this is the time to act fast and adopt the best accounting software in order to keep your financial records on track.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)